Respect your confidence in your research Plough - welldone and I hope this is a good year for you.
Looks like KBL is relying on a higher CU price to be profitable - selling at 25% discount could mean that the chinese are paying KBL to mine at a loss. Wonder if they can pause mining in that contract, until Cu prices recover.
My understanding of the greater plan was to use Mineral hill cashflow to advance the Ag Pb mine. So long as they are not bleeding too much from Min Hill, they have cash to do so.
Another big dif. between KBL and BSM is proven resources. BSM have grades and tailings, but are yet to prove up long mine life - KBL have the resources but will suffer from a drop in Cu prices/increase in expenses. This scenario could be offset by rise in Ag prices.
Interesting to see how long the cash will last,based on different Cu prices. Still looks like good value for the MC and there are worse Ag plays. (not to mention Pearce).
KBL Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
